How To File Bankruptcy for Free in Vermont (2025 Guide)

Feeling overwhelmed by bills and collection calls? You’re not alone. Many Vermonters have found relief through Chapter 7 bankruptcy.

Chapter 7 bankruptcy erases common debts like credit cards and medical bills. It gives you a fresh financial start. You can complete the entire process without hiring a lawyer.

This guide walks you through every step of filing bankruptcy in Vermont.

10 Steps To File Chapter 7 Bankruptcy in Vermont

Follow these steps to file your bankruptcy case successfully.

1. Collect Your Vermont Bankruptcy Documents

You’ll need several documents to file Chapter 7 bankruptcy. Some are required by the court. Others make filling out forms much easier.

📂 Required documents the court or trustee needs:

• Paycheck stubs from the past six months
• Tax returns from the last two years
• A bank statement that includes your filing date

🗂️ Helpful documents to gather:

• Bank statements from the last 6–12 months
• Recent credit card and loan statements
• Letters or notices from debt collectors
• A recent credit report

You can get a free credit report every week from all three bureaus at AnnualCreditReport.com.

2. Take a Credit Counseling Course

Before filing, you must complete a credit counseling course. The course explains your debt relief options. It helps you decide if Chapter 7 is right for you.

📌 Important requirements:

• Complete the course within 180 days before filing
• Choose a court-approved provider in Vermont
• Most people take it online or by phone
• The course takes about an hour
• Cost ranges from $10–$50, with fee waivers available

✅ After finishing, you’ll receive a certificate of completion. Include this with your bankruptcy forms or your case could be dismissed.

3. Complete the Bankruptcy Forms

Next, fill out your bankruptcy forms. These give the court a complete picture of your finances.

The forms cover your income, debts, property, and expenses. Most forms are federal and identical across all states. Download free fillable PDFs from USCourts.gov.

🔧 Need help? Speak with a bankruptcy attorney for free to ensure your forms are completed correctly.

Vermont also requires some local forms. You’ll find these listed in the Districts & Filing Requirements section below.

4. Get Your Filing Fee

The court filing fee for Chapter 7 is $338. Many people qualify for a fee waiver based on income.

📆 If you don’t qualify for a waiver, you have two payment options:

• Pay the full $338 when you file
• Request an installment plan with a down payment and monthly payments

🛑 Once you file, the automatic stay takes effect immediately. This stops most creditors from collecting while your case is active.

Keep up with installment payments or your case could be dismissed.

5. Print Your Bankruptcy Forms

After completing your forms, print them for filing. Using a checklist helps you track what needs printing and signing.

🖨️ Printing requirements:

• Use standard white 8.5″ x 11″ letter-size paper
• Print in black ink
• Print pages single-sided
• Don’t staple or hole-punch your forms

🖊️ Sign every page that requires a signature before filing.

6. File Your Forms With the Vermont Bankruptcy Court

You can file your bankruptcy forms in person or by mail. Electronic filing isn’t available for people without lawyers.

🏛️ Filing in person is the fastest option. The clerk reviews your packet immediately. You’ll know right away if anything is missing. No worries about mail delays.

📬 If you mail your forms, double-check signatures and required pages. Use certified mail with tracking to confirm delivery.

7. Mail Documents to Your Trustee

After filing, the court assigns a bankruptcy trustee to your case. The trustee reviews your paperwork and leads your 341 meeting.

📌 You’ll receive an official notice with your trustee’s name and contact information. The notice includes your 341 meeting date and time.

Send these documents to your trustee at least 14 days before your meeting:

• Your most recent federal tax return
• A bank statement that includes your filing date
• A copy of your photo ID
• Proof of your Social Security number
• Your most recent paystub or income proof

Your trustee may request additional documents. Send them promptly to keep everything on track.

8. Take a Debtor Education Course

After your 341 meeting, complete a debtor education course. This course is different from the pre-filing credit counseling.

The course covers budgeting, credit management, and financial planning.

🧠 Key details:

• Complete within 60 days of your 341 meeting
• Cost ranges from $10–$50, with fee waivers available
• Takes about an hour to complete
• Choose a court-approved provider
• Submit your completion certificate to the court

The court needs this certificate before granting your discharge.

9. Attend Your 341 Meeting

About a month after filing, you’ll attend your 341 meeting. The bankruptcy trustee confirms your identity and asks simple questions about your paperwork.

📌 Most 341 meetings happen over Zoom video. Your court notice includes the date, time, and login information.

The meeting typically lasts less than 10 minutes. You’ll be placed under oath. The trustee asks about your income, property, and financial changes.

📄 Have these items ready during your meeting:

• Government-issued photo ID and Social Security proof
• A copy of your bankruptcy forms
• Documents you sent to the trustee
• Your official case notice from the court

🏁 Most people feel nervous beforehand. They’re usually surprised by how quick and simple it is.

10. Deal With Your Car

Many people worry about losing their car in bankruptcy. Most people keep their vehicle.

🚙 If you own your car outright, you can likely keep it if its value falls within exemption limits. Vermont allows $2,500 in equity for one car. Federal exemptions protect up to $5,025.

💵 If you have a car loan, your options depend on your equity. Equity is the difference between your car’s value and loan balance.

You have three choices:

• Surrender: Return the car to the lender. The remaining loan gets wiped out. Good option when you owe more than the car’s worth.
• Redemption: Pay the car’s current value in one lump sum. Keep the vehicle. The lender must agree.
• Reaffirm: Continue making regular loan payments. You must be current on payments. Both lender and judge must approve.

📝 If you’re leasing your car, you can keep the lease and continue payments. Or you can walk away.

Vermont Bankruptcy Means Test

To qualify for Chapter 7, you must pass the means test. It’s a two-part income test. The test shows whether you can afford to repay debts.

📊 Step 1 compares your household income to Vermont’s median income. If your income is below the median, you pass. You can file Chapter 7. Many people qualify at this step.

📈 Step 2 applies if your income exceeds the median. This part examines your expenses. It calculates your monthly disposable income after basic needs. You might still qualify if little income remains.

Vermont Median Income Standards

These income thresholds determine means test eligibility for 2025 filings:

• 1 person household: Contact a bankruptcy attorney for current figures
• 2 person household: Contact a bankruptcy attorney for current figures
• 3+ person household: Contact a bankruptcy attorney for current figures

Vermont Fee Waiver Eligibility

You qualify for a fee waiver when your income is under 150% of the poverty level:

• 1 person: $1,882.50/month
• 2 people: $2,555.00/month
• 3 people: $3,227.50/month
• 4 people: $3,900.00/month

Vermont Districts & Filing Requirements

Vermont has a single bankruptcy court district handling all state cases. File your forms in person or by mail at these locations:

📍 Burlington Courthouse
Federal Building
11 Elmwood Ave, Room 200
Burlington, VT 05401

📍 Rutland Courthouse
U.S. Bankruptcy Court
151 West Street
Rutland, VT 05701

Local Forms & Filing Fee Information

📄 Vermont mostly uses standard federal bankruptcy forms. You’ll need a few local forms, including:

• Mailing matrix (list of creditor names and addresses)
• Payment Advices Cover Sheet for pay stubs

Find these forms on the court’s website. The court’s Guide for the Self-Represented Debtor explains formatting requirements.

💰 Pay the filing fee with a cashier’s check or money order. Make it out to Clerk, U.S. Bankruptcy Court.

🚫 The court doesn’t accept cash, credit cards, debit cards, or personal checks from self-filers.

Vermont Bankruptcy Exemptions

Bankruptcy exemptions protect certain property when you file Chapter 7. They ensure you keep things needed for daily life and work.

In Vermont, choose between state exemptions and federal exemptions. You can’t mix them.

⚖️ Key Vermont exemptions compared to federal exemptions:

• 🏠 Homestead
  • Vermont protects up to $125,000 of home equity
  • Federal exemption protects up to $31,575
• 🚗 Motor vehicle
  • Vermont protects up to $2,500 in equity for one car
  • Federal exemption protects up to $5,025
• 🃏 Wildcard
  • Vermont gives you $400 wildcard for any property, plus up to $7,000 from unused exemptions
  • Federal wildcard is $1,675, plus up to $15,800 of unused homestead exemption

Vermont Bankruptcy Lawyer Cost

Hiring a bankruptcy lawyer is typically the biggest expense. In Vermont, attorneys charge flat fees of about $1,100–$1,500 for Chapter 7 cases.

Costs increase if your situation is complex. Cases involving homes or multiple assets cost more.

Want to explore your options? Speak with a bankruptcy attorney for free to discuss your specific situation.

Vermont Legal Aid Organizations

Legal aid organizations provide free or low-cost help to people who can’t afford lawyers. These groups can guide you through the bankruptcy process and answer questions.

Contact Vermont Legal Aid or local bar associations for assistance finding qualified help.